The city of Burlingame, CA, is often referred to as the City of Trees. The city’s beautiful green spaces are a combination of public and private horticulture and a testament to the favorable environment of Northern California. Burlingame is a great city to visit, live in, or invest in. With streets listed on the National Register of Historic Places and easy proximity to San Francisco, the city is experiencing a booming real estate market. Burlingame homes for sale have high demand, high prices, and high earning potential for the future.
Below are six reasons why you should consider investing in Burlingame real estate—despite the luxury price tag.
1. Burlingame is a beautiful, convenient place to live
Located just south of the San Francisco airport, Burlingame is a small city in the heart of the San Francisco Peninsula. It offers miles of shoreline to explore, including Bayfront Park which has stunning views of the water and trails perfect for a beautiful adventure along the coast. Much of the Burlingame shoreline is undergoing redevelopment, amounting to new real estate investment opportunities and a more luxurious community near Shoreline Park. Shoreline Park is a nine-acre waterfront park with ample open space and direct access to the Bay. It’s near the airport and is a significant jumping-off point for tourists in the Bay Area.
The City of Trees continues to attract visitors and residents, given the extra shade of its more than 18,000 trees and the fact that the weather is slightly cooler than in the rest of the Bay Area. Burlingame was settled by wealthy San Francisco families looking for a better climate outside the city, and the city continues to provide a high quality of life for residents, including top-rated public schools. The short commute (about 30 minutes) to San Francisco attracts commuters, renters, and homebuyers looking to enjoy a residential life with easy access to a big city.
2. Low mortgage rates
Burlingame mortgage rates are historically low. The average 30-year fixed-rate mortgage is 3.03%. A 15-year fixed-rate mortgage is even lower at 2.29%. If mortgage rates were 4% on a million-dollar home, for example, you will pay at least $400 more per month for your mortgage payment. Burlingame homes for sale are currently selling at a median sales price of $2,525,000, which means an average of $1,000 per month saved at current interest rates. Keep in mind that if your credit score is below 700, you may pay slightly higher rates. Even then, your rate (and likewise your mortgage payment) will be well below traditional levels.
3. High demand
The housing shortage all but guarantees stable p roperty values. The number of homes on the market in Burlingame has reached a record low. As such, the average Burlingame home is selling for approximately 6% over list price, with some going as high as 14%. About half of all homes across the United States are currently selling above their list price, and obviously, Burlingame is no exception. This number may fluctuate but will continue to rise overall as there are simply not enough homes to keep up with demand. Given the popularity of San Francisco’s market to the north and Silicon Valley’s market to the south, you can feel confident that your investment in Burlingame will appreciate over time.
4. A seller’s market
Burlingame’s low inventory solidifies its seller’s market. There is much more demand for housing than there are Burlingame homes for sale. This means homeowners hold all the cards in real estate transactions. Last year, 37 homes were sold in the month of August, which is up from 22 the previous year. In 2021, homes are selling quickly and spend an average of just ten days on the market, compared to 30 days in 2020. Now is the time to invest, as prices and interest rates will increase with time. Price appreciation on the San Francisco Peninsula has been steady.
5. Rentals and vacation homes
The market for rentals and vacation homes is also hot in Burlingame. Over 49% of the population in Burlingame rents their home. Currently, less than 2% of the homes and apartments in Burlingame are available for rent. So, there is a high demand for rental property. Additionally, Burlingame’s proximity to the San Francisco airport, BART, and Bay Area provides the city with a built-in tourism industry. Vacation rental opportunities abound for investors or residents looking to supplement their income.
6. Gain an advantage with the right agent
Working with a knowledgeable, local agent, who is experienced with Burlingame’s competitive marketplace, will give you a significant advantage over other buyers. A realtor that has a history of successful transactions in the area will be well-connected and will have relationships with colleagues and other industry professionals to make them a trusted negotiator.
Purchasing an investment property is different from purchasing a primary home, and not all agents have experience with investment transactions. A specialized Burlingame real estate investment agent will help you find areas that are conducive to full-time and vacation rentals. They will also be able to help you understand the unique financing and budgeting required for maintaining investment properties.
Michael Maze’s Team of realtors has deep experience helping homeowners and investors find the ideal Burlingame real estate for their needs. Michael and his team pride themselves on providing superb customer service to their clients, and their local expertise is unmatched in the Burlingame real estate market.